Senior Managers and Certification Regime—one minute guide
Senior Managers and Certification Regime—one minute guide

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • Senior Managers and Certification Regime—one minute guide
  • The Senior Managers Regime and Certification Regime—what is it?
  • Who does the SM&CR apply to?
  • The key requirements of the SMR
  • Senior Management Functions
  • Statement of responsibilities for senior managers
  • Management Responsibility Maps
  • The Certification Regime
  • The Conduct Rules
  • The duty of responsibility for senior managers
  • more

The Senior Managers Regime and Certification Regime—what is it?

The regime has three key elements: the Senior Managers Regime and Certification Regime (SM&CR) and the Conduct Rules. The regime came into effect on 7 March 2016 for UK banks, building societies, credit unions and Prudential Regulation Authority-designated (PRA) investment firms and branches of foreign banks operating in the UK. It came into effect for all dual-regulated insurers from 10 December 2018 and was extended to FCA solo-regulated firms on 9 December 2019, with the exception of benchmark administrators which will become subject to the regime on 7 December 2020. It consists of:

  1. the Senior Managers Regime (SMR)—the SMR focuses on individuals performing a senior management function (SMF) specified by either regulator, on behalf of a relevant firm whether physically based in the UK or overseas. The SMR imposes obligations on firms’ most senior decision makers

  2. the Certification Regime (CR)—this applies to all employees of relevant firms who are not senior managers who could pose a risk of significant harm to the firm, its reputation or any of its customers (for example, staff who give investment advice or administer benchmarks). Such individuals do not need to be pre-approved by the regulators. Instead, firms certify that these individuals are fit and proper for their roles on an ongoing basis

  3. Conduct